5 Hated Earnings Stocks You Should Love

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

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This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

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If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

InvenSense

My first earnings short-squeeze trade idea is semiconductor player InvenSense (INVN), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect InvenSense to report revenue of $57.42 million on earnings of 10 cents per share.

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Just recently, Pacific Crest increased its price target on InvenSense to $27 from $20, as the firm believes the launch of the iWatch and iPhone 6 by Apple (AAPL) could enable InvenSense to finally obtain a deal from the tech giant. The firm reiterated its outperform rating on the stock.

The current short interest as a percentage of the float for InvenSense is extremely high at 35%. That means that out of the 73.41 million shares in the tradable float, 24.97 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.9%, or by about 963,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of INVN could easily rip sharply higher post-earnings as the bears jump to cover some of their positions.

From a technical perspective, INVN is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock recently formed a triple bottom chart pattern at $20.10, $20.19 and $20.08 a share. Following that bottom, shares of INVN are now starting to spike higher and move within range of triggering a major breakout trade post-earnings.

If you're bullish on INVN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $22.50 to its all-time high at $24.34 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 2.67 million shares. If that breakout starts post-earnings, then INVN will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $35 a share.

I would simply avoid INVN or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $20.08 to its 200-day moving average of $18.96 a share high volume. If we get that move, then INVN will set up to re-test or possibly take out its next major support levels at $17.76 to $16 a share.

Energy XXI

Another potential earnings short-squeeze play is oil and gas exploration player Energy XXI (EXXI), which is set to release its numbers on Thursday before the market open. Wall Street analysts, on average, expect Energy XXI to report revenue $285.80 million on earnings of 31 cents per share.

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The current short interest as a percentage of the float for Energy XXI is extremely high at 28%. That means that out of the 61.58 million shares in the tradable float, 17.37 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 14.9%, or by about 2.24 million shares. If the bears get caught pressing their bets into a strong quarter, then shares of EXXI could easily soar sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, EXXI is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been trending sideways and consolidating for the last three months, with shares moving between $21.32 on the downside and $24.59 on the upside. Shares of EXXI are now starting to bounce off its 50-day moving average and it's quickly moving within range of triggering a near-term breakout trade above the upper-end of its sideways trading chart pattern.

If you're in the bull camp on EXXI, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $24.26 to $24.59 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.18 million shares. If that breakout hits, then EXXI will set up to re-test or possibly take out its next major overhead resistance levels at $27.66 to $28.50 a share. Any high-volume move above those levels will then give EXXI a chance tag $30 to $32 a share.

I would simply avoid EXXI or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $23.34 a share with high volume. If we get that move, then EXXI will set up to re-test or possibly take out its next major support levels at $22.07 to its 52-week low of $20.40 a share. Any move below $20.40 will then push shares of EXXI into new 52-week-low territory, which is bearish technical price action.

Weight Watchers

Another potential earnings short-squeeze candidate is global-branded consumer weight management services provider Weight Watchers (WTW), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Weight Watchers to report revenue of $399.20 million on earnings of 9 cents per share.

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The current short interest as a percentage of the float for Weight Watchers is extremely high a 38%. That means that out of the 27.55 million shares in the tradable float, 10.77 million shares are sold short by the bears. This is a stock with a monster short interest and a very low tradable float. Any bullish earnings news could easily send shares of WTW soaring higher post-earnings as the bears rush to cover some of their positions.

From a technical perspective, WTW is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been trending sideways and consolidating for the last two months and change, with shares moving between $19.50 on the downside and $22.16 on the upside. Any high-volume move above the upper-end of its recent sideways trading chart pattern could trigger a major breakout trade for shares of WTW post-earnings.

If you're bullish on WTW, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $21.64 to $22.16 a share and then once it takes out its gap-down-day high of $23.18 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.25 million shares. If that breakout materializes after earnings, then WTW will set up to re-fill some of its previous gap-down-day zone from February that started at $31.40 a share.

I would avoid WTW or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some near-term support levels at $20.27 to its 52-week low of $19.50 a share with high volume. If we get that move, then WTW will set up to enter new 52-week-low territory, which is bearish technical price action.

Outerwall

Another earnings short-squeeze prospect is automated retail solutions provider Outerwall (OUTR), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Outerwall to report revenue of $586.65 million on earnings of 95 cents per share.

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Just recently, Wedbush Securities wrote in a note to investors that they're maintaining their outperform rating on OUTR and a 12-month price target of $82 per share. That price target reflects just over 11 times their 2014 EPS estimate of $7.34, which is a discount to its historical valuation and reflects recent rental demand declines and uneven profitability.

The current short interest as a percentage of the float for Outerwall is extremely high at 34%. That means that out of the 19.35 million shares in the tradable float, 8.06 million shares are sold short by the bears. This is a stock that currently sports a gigantic short interest and an extremely low tradable float. If the bulls get the earnings news they're looking for, then shares of OUTR could explode to the upside as the bears rush to cover some of their bets.

From a technical perspective, OUTR is currently trending below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock recently pulled back to its 200-day moving average, and subsequently has rebounded in a V-shaped pattern back to around its 50-day moving average. This move is starting to push shares of OUTR within range of triggering a major breakout trade post-earnings.

If you're bullish on OUTR, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $72 to $73.25 a share and then once it clears its 52-week high at $74.30 a share with strong volume. Look for volume on that move that hits near or above its three-month average action of 916,340 shares. If that breakout gets underway post-earnings, then OUTR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off breakout are $85 to $90 a share, or even $95 a share.

I would simply avoid OUTR or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $67 to $66 a share with high volume. If we get that move, then OUTR will set up to re-test or possibly take out its next major support levels at its 200-day moving average of $64.60 to $62.60 a share. Any high-volume move below those levels will then give OUTR a chance to tag $57 to $55 a share.

Blucora

My final earnings short-squeeze play is online solutions provider Blucora (BCOR), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Blucora to report revenue of $216.98 million on earnings of $1.03 per share.

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The current short interest as a percentage of the float for Blucora is very high at 17.8%. That means that out of the 40.09 million shares in the tradable float, 7.10 million shares are sold short by the bears. This stock sports a large short interest with a relatively low tradable float. If this company can deliver the earnings news the bulls are looking for, then shares of BCOR could easily rip sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, BCOR is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been consolidating and trending sideways for the last two months, with shares moving between $18.06 on the downside and $20.65 on the upside. Any high-volume move above the upper-end of its recent sideways trading pattern post-earnings could easily push shares of BCOR into breakout territory.

If you're in the bull camp on BCOR, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $19.60 to $19.90 a share and then once it takes out more resistance at $20.65 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 894,050 shares. If that breakout triggers after earnings, then BCOR will set up to re-test or possibly take out its next major overhead resistance levels at $22.11 to its 200-day moving average of $23.36 a share. Any high-volume move above those levels will then give BCOR a chance to tag $25 to $26 a share.

I would avoid BCOR or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $18.30 to $18.06 a share with high volume. If we get that move, then BOCR will set up to re-test or possibly take out its 52-week low at $14.52 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Small-Business 401(k)s Are a Ripe Opportunity for Advisors

In news that will probably come as no surprise to advisors, small-business plan sponsors who work with a financial advisor are more likely to be satisfied with their 401(k) plan than those who don’t, a Guardian survey found. Nearly half of small businesses don't have a retirement plan, but many are interested in starting one. 

All around, the survey, released by the Guardian Life Insurance Co. on Monday, paints a picture of ripe opportunity for advisors.

The study found 61% of plan sponsors who work with an advisor on their plan reported being “very satisfied,” compared with 40% who don’t have an advisor. Sponsors are pretty satisfied with their 401(k) plans in general. Ninety-eight percent said they were very or somewhat satisfied with their plan.

The survey was conducted by Brightwork Partners for Guardian in November and December among more than 450 senior executives. Respondents were responsible for employee benefit plans at firms with between 25 and 249 employees.

The survey found 46% of respondents don’t offer a retirement plan, mostly because it is too expensive. However, 58% of those who don’t offer a plan said they were interested in setting one up sometime in the next three years.

Advisors interested in grabbing some of that business should focus on educating their sponsor clients, as there are a couple of areas where they are confused. The survey found 30% of respondents who don’t currently offer a plan aren’t sure which type is best for their firm.

Fiduciary responsibilities are another source of confusion, with nearly 20% of plan sponsors saying they are unhappy with the level of fiduciary support they’ve received. Another third of respondents weren’t even aware they were the fiduciary to the plan.

As with overall satisfaction level, sponsors who work with an advisor were more knowledgeable about fiduciary responsibilities and other plan requirements than those who don’t have an advisor.

“While most plan sponsors are satisfied, there are still areas where employers and employees need help. Small-plan sponsors are increasingly realizing the value of working with third-party support services and financial professionals for outsourced solutions that help save time and mitigate fiduciary risks,” Dubitsky said. “This, and the fact that many non-sponsors are extremely confused by their options in the 401(k) market, reinforces what we have seen at Guardian for a long time – there are more and better opportunities for financial professionals in the small-plan retirement market than ever before.”

As for what specifically sponsors are satisfied with, the survey found 90% believe their plan is successful in recruiting and retaining talented employees, allowing the firm to offer competitive benefits and, most important, helping their employees save for an adequate retirement income.

About the same percentage agree that their plan works well for their employees. About 90% say their 401(k) plan has helped make saving easier for participants.

“Nothing in our history has helped promote retirement savings more than workplace defined contribution plans, and this study tells us that the vast majority of small business owners who offer 401(k) plans are satisfied with both the plan itself and their plan providers,” Doug Dubitsky, vice president at Guardian Retirement Solutions, said in a statement. “Even for small businesses, 401(k) plans are delivering what they were designed to do.”

Top 5 Heal Care Stocks To Watch For 2014

Top 5 Heal Care Stocks To Watch For 2014: Orange County Business Bank (OCBB)

Orange County Business Bank is Orange County's elite full-service commercial bank. The Company is a capitalized bank in Southern California.

The Company is serving the needs of businesses and professionals throughout Orange County. It offers relationship banking services for locally owned and operated businesses, professional practices, and commercial/industrial companies in Orange County and adjacent markets.

Advisors' Opinion:

• [By CRWE]

  Today, OCBB remains (0.00%) +0.000 at $7.15 thus far (ref. google finance Delayed: 2:07PM EDT August 1, 2013).

  Orange County Business Bank previously reported financial results for the three months and six months ended June 30, 2013.

  The Bank's net income for the three months ended June 30, 2013 was $204 thousand versus a net loss of $47 thousand for the same period in 2012. The Bank reported net income for the first six months of 2013 of $649 thousand versus a net loss of $126 thousand for the same period in 2012.

  The Bank's net interest income for the three months ended June 30, 2013 was $1.4 million versus $1.1 million a year ago. The difference of $300 thousand in net interest income was primarily driven by an increase in the total loans outstanding. Net interest income for the six months ended June 30, 2013 was $2.6 million versus $2.4 million for the same period in 2012. The difference of $200 thousand was due to an increase in the total loans outstanding. The Bank continues to aggressively push into established and successful markets to develop profitable relationships. This push has resulted in the growth of loans, deposits and net interest income

source from Top Stocks Blog:http://www.topstocksblog.com/top-5-heal-care-stocks-to-watch-for-2014-3.html

These states have no income tax

There are seven U.S. states with no income tax, while another two states have no income tax on wages but do tax interest and dividends -- an important consideration for retirees. The grass isn't always greener on the other side of the state line, though. These states still need money for government services, and they raise it through other means, namely sales taxes, property taxes, and other fees. Depending on your situation and your willingness to move, with some planning you could start paying less in taxes and keeping more of your income. Read on to find out more.

States with no income tax:

AlaskaFloridaNevadaSouth DakotaTexasWashingtonWyoming

States with nearly no income tax:

TennesseeNew Hampshire

Let's examine each of the states with no income tax using each state's data on tax revenue as well as the Tax Foundation's most recent data, which is for 2011. The Tax Foundation has been collecting data on taxes since 1937, and its data takes into consideration a per-capita average of both state and local taxes.

1. Alaska

If saving money is your only concern, Alaska is the best place for you. Of course, with its distance from the rest of the country and harsh winters, America's northernmost state is not for everyone. According to the Tax Foundation, the average state and local tax paid per capita was $3,319 -- the 18th-lowest amount out of all 50 states. Senior citizens get an added incentive to live in Alaska, as the state exempts them from the first $150,00 of assessed value for property taxes.

With no state sales tax and relatively low property taxes, Alaska funds itself through royalties on oil and gas production. Besides low taxes, residents of Alaska get a direct benefit from these royalties through Alaska's Permanent Fund, which pays full-year residents of Alaska a yearly dividend based on the earnings of the royalties.

The fund has paid out an average of $1,100 per year the past five years! Though the level has been decreasing as oil and gas pr! ices and Alaskan production have dropped, that's still a decent chunk of change for simply living in the state. If you subtract the average dividend from the average per-capita state and local taxes paid, you get $2,200. That would be the lowest net per-capita state and local tax bill by $400.

2. Florida

Florida's warm weather has long been a draw for tourists from around the world and retirees who are fed up with winter. As an added draw for residents, Florida has not had a state income tax since it was repealed in 1855. The state mainly funds itself with a 6% sales tax and property taxes. In 2011, the average per-capita state and local tax paid in Florida was $3,699, according to the Tax Foundation -- the 24th-highest out of all 50 states.

3. Nevada

Nevada's gambling and tourism industry has long been the state's main draw, though its non-gambling tourism has grown through the years through shows, conventions, retail, nightclubs, and electronic dance music. The lack of individual and corporate income taxes is a big draw for businesses and residents alike. However, Nevada has a modified business tax that taxes businesses 1.17% (2% for financial institutions) on the wages paid in the state after deducting health care expenses.

Like other tourist-friendly states, Nevada funds itself through sales and use taxes, which start at 6.85% and make up 72% of the state's revenue. In 2011, the average per-capita state and local tax paid was $3,221, according to the Tax Foundation -- the 15th-lowest out of all 50 states.

4. South Dakota

South Dakota, my favorite state in the Midwest to drive through, has the fifth-smallest output in the U.S., and its economy is mainly powered by farming and tourism. Besides Wall Drug, the best road-trip stop in the U.S., the state is known for numerous national parks, the historic city of Deadwood, and the Sturgis Motorcycle Rally.

With no income tax on individuals or corporations, the state funds itself through a 4% sales tax and var! ious use ! taxes. In 2013, the sales and use tax made up 71% of the state's revenue. Perhaps unsurprisingly, given the state holds the largest motorcycle rally in the U.S., motor fuel taxes are the second-largest contributor to the state's coffers at 9%. In 2011, the average per-capita state and local tax paid was $3,052, according to the Tax Foundation -- the seventh-lowest out of all 50 states.

5. Texas

Texas funds itself through a 6.25% sales tax, taxes on motor vehicle sales and fuel, and taxes and royalties on oil and natural-gas production. Texas has no corporate income tax and is greatly helped by the oil and gas throughout the state and the Gulf of Mexico. In 2011, the average per-capita state and local tax paid was $3,088, according to the Tax Foundation -- the eighth-lowest out of all 50 states.

6. Washington

Washington is a great example of the need to check all the data. The state primarily funds itself through a 6.5% sales tax that makes up more than 60% of its revenue. Localities add to this, so the sales tax can be as high as 9.5% in some areas. While the state has no corporate income tax, it does have a gross receipts tax, which charges businesses roughly 1% of revenue. This may not sound like much, but if a business is losing money, it still owes the government money at the end of the year, which is not the case with a corporate income tax. Such high sales taxes and property taxes add up. In 2011, the average per-capita state and local tax paid was $4,366, according to the Tax Foundation -- the 12th-highest in the U.S.

7. Wyoming

Wyoming funds itself mainly through its natural-resources taxes, as well as property taxes. The state has a property tax rate of 9.5%, though its sales tax is only 4%. In 2011 the average per-capita state and local tax paid was $3,500, according to the Tax Foundation -- the 22nd-lowest in the U.S.

States with nearly no income tax

1. Tennessee

Tennessee has no income tax but does have a "hall tax" -- that is, a 6% tax o! n interes! t and dividends, which is specifically allowed by the state constitution. Tennessee also has a 7% sales tax. Income taxes are a contentious issue in Tennessee. The state constitution gives the government the right to tax property as well as income from stocks and bonds, but it does not mention personal income. Every so often lawmakers try to institute an income tax, as the constitution does not specifically bar this. This November, Tennesseans will vote on an amendment to the state constitution to ban any future taxes on payroll or personal income.

While Tennessee has no income tax on wages, if you are a retiree living off of dividends and interest income, you should think twice before moving to Tennessee for the tax benefits. In 2011, the average per-capita state and local tax paid was $2,777, according to the Tax Foundation -- the second-lowest in the U.S.

2. New Hampshire

New Hampshire, like Tennessee, has no income tax on earned income but has a 5% tax on interest and dividends. The state has no sales tax but has an 8.5% corporate tax rate, as well as high property-tax rates, which add up. In 2011, the average per-capita state and local tax paid was $3,769, according to the Tax Foundation -- the 22nd-highest in the U.S.

Bottom line

When it comes to a state's tax rates, there's more to consider than income tax, but it doesn't hurt to start there, especially if you're living off interest and dividends.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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Hasbro Continues its Profitable Streak

Top Food Companies To Buy Right Now

Hasbro, Inc. (HAS) has been on the radar of many investment gurus like Paul Tudor Jones (Trades, Portfolio) and John Hussman (Trades, Portfolio) for some time now, given its position as the second largest toy manufacturer in the industry, only outranked by Mattel, Inc. (MAT). But the company's first quarter earnings report showed that it could possibly outperform industry giant and rival Mattel in terms of growth, as Europe and Latin America registered 8% and 17% growth respectively, while Mattel saw declines in the same regions. Furthermore, quarterly earnings were driven mainly by the girls' category, which sported a 20% increase in demand for My Little Pony, Equestria Girls, and Nerf Rebelle products. So, with profitability on the right track, what can investors expect from this industry player in the long term?Licensing agreements and emerging market growthAlthough Hasbro's quarterly earnings were boosted by the girls' toy category, while the boys' segment showed merely 2% growth, fiscal 2014 should balance out the segments when the Transformers and Spiderman films launch in the second quarter. Owning a licensing agreement for Marvel has also helped boost results in the domestic market and Canada, as the recent launch of "Captain America: The Winter Soldier" was a box office hit, thereby boosting sales of the Captain America action figure in the U.S. Moreover, the firm has been clever to focus its energy some years ago on the digital and entertainment business, giving it a competitive advantage over industry rivals. In fact, while Hasbro's relationship with Activision Blizzard, Inc. (ATVI) has been significant in positioning the firm in the digital market, its joint venture with Discovery Communications Inc. (DISCA) – The Hub – has helped generate very strong brand loyalty, as well as new revenue streams.Furthermore, management has made a point of in! creasing its stewardship of shareholders via a dividend yield of nearly 3%, as well as its share buyback program that the firm executed on track, repurchasing 1.9 million shares throughout fiscal 2013. And while the dividend rate is solid (having doubled over the past five years), the company's cost saving initiative launched in 2013 will allow it to save $100 million annually by cutting down the work force and improving efficiency. Looking forward, investors can expect Hasbro to continue Q1's growth streak, with sales increasing 6% for 2014, due to stable demand in the domestic market and strong growth in the international segment, especially in emerging markets. Also, considering that five of the company's seven franchise brands sported a 15% growth rate, increasing quarterly revenue by 2%, it's likely that Q2 will show even stronger results, due to the Easter holiday.Positives outranking negativesAlthough Hasbro's earnings per share have lost strength since 2012, decreasing from $2.82 to a current $2.2, most of the company's metrics have improved significantly. Q1 showed a substantial increase in gross margins, rising 90 basis points to 61.9%, due to improved inventory management and a more diversified and favourable revenue mix. The shift towards the entertainment segment will also contribute to increasing operating margins, which should jump from the current 11.44% to more than 15% over the next decade.Moreover, the company's historically strong returns on capital (averaged 20% of the past five years) should remain solid and well above the average cost of capital of 8.8% in the long term. I also feel bullish about Hasbro's debt reduction, which decreased significantly from $1.4 billion to $960 million over the past year. Overall, considering the stock's trading price of 25.2x trailing earnings compared to the industry average of 21.4x, I believe this investment is definitely worthwhile for a long term! profit g! ain.Disclosure: Patricio Kehoe holds no position in any stocks mentioned.Also check out: John Hussman Undervalued Stocks John Hussman Top Growth Companies John Hussman High Yield stocks, and Stocks that John Hussman keeps buyingAbout the author:Patricio KehoeA fundamental analyst at Lone Tree Analytics

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5 Best New Stocks To Invest In 2015

The�megabillion-dollar buyout�of Life Technologies (NASDAQ: LIFE  ) by Thermo Fisher Scientific (NYSE: TMO  ) grabbed a lot of headlines earlier this week. Fool contributor Rich Smith, however, has a different story to tell.

It's the story of one overpriced company buying another company that's an even worse bargain, which resulted in a medical equipment behemoth that's even more egregiously overpriced than the two companies were separately.

Want a better health-care investing idea? When President Obama was reelected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand-new premium report on UnitedHealth, The Motley Fool takes a long-term view, honing in on�prospects for UnitedHealth in a post-Obamacare world. So don't miss out -- simply�click here now�to claim your copy today.

5 Best New Stocks To Invest In 2015: Solar Thin Films Inc (SLTZ)

Solar Thin Films, Inc. is engaged in the business of designing, manufacturing and installation of thin-film amorphous silicon (a-Si) photovoltaic manufacturing equipment. The equipment is used in plants that produce photovoltaic thin-film a-Si solar panels or modules. The Company operates through its wholly owned subsidiary, Kraft Elektronikai Zrt (Kraft). Kraft is engaged in the design, development, manufacture, and installation of a-Si photovoltaic manufacturing equipment. The primary buyers of photovoltaic thin-film manufacturing equipment are businesses, as well as investment partnerships, engaged in the production of photovoltaic thin-film modules. In May 2010, the Company acquired Atlantis Solar LLC. In May 2013, Solar Thin Films Inc acquired Quality Resource Technologies Inc. In October 2013, Solar Thin Films Inc announced the sale of all of its ownership stake of Hungarian subsidiary, Kraft, R.t. (Kraft), to GJR Collectibles LLC.

Kraft has been providing equipment that is incorporated into a single manufacturing line capable of manufacturing a-Si solar modules that produce approximately 5megawatt (MW) of solar power annually. The Company focuses, directly and through joint ventures or alliances with other companies or governmental agencies, to sell equipment for and participate financially in solar power facilities using thin film a-Si solar modules or metallurgical and other crystalline solar modules as the power source to provide electricity to municipalities, businesses and consumers.

The Company competes with Applied Materials and Oerlikon.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Alliance Creative Group Inc (OTCMKTS: ACGX), Dale Jarrett Racing Adventure Inc (OTCMKTS: DJRT), Inscor Inc (OTCMKTS: IOGA) and Solar Thin Films Inc (OTCMKTS: SLTZ) have all been getting some attention lately in various investment newsletters and it should come as no surprise that two out of four of these stocks have been the subject of paid promotions ��which tend to benefit traders. However, two out of four of these stocks also have pretty good financials for being small cap OTC stocks and that might make them attractive to investors with a long term time horizon. So which of these stocks might make traders some profits in the short term and investors some profits over the longer term? Here is a closer look to help you decide:

5 Best New Stocks To Invest In 2015: Solazyme Inc (SZYM)

Solazyme, Inc. (Solazyme), incorporated on March 31, 2003, makes oil. The Company�� technology transforms a range of plant-based sugars into oils. Its renewable products can replace or enhance oils derived from the world�� three existing sources-petroleum, plants and animal fats. The Company is focused on commercializing its products into three target markets: fuels and chemicals, nutrition, and skin and personal care. In 2010, the Company launched its products, the Golden Chlorella line of dietary supplements. In March 2011, the Company launched its Algenist brand for the luxury skin care market through marketing and distribution arrangements with Sephora S.A. (Sephora International), Sephora USA, Inc. (Sephora USA), and QVC, Inc. (QVC).

The Company is engaged in development activities with multiple partners, including Chevron U.S.A. Inc., through its division Chevron Technology Ventures (Chevron), The Dow Chemical Company (Dow), Ecopetrol S.A. (Ecopetrol), Qantas Airways Limited (Qantas) and Conopoco, Inc., doing business as Unilever (Unilever).

In 2010, the Company entered into a 50/50 joint venture with Roquette Freres, S.A. (Roquette). In November 2010, the Company entered into a joint venture and operating agreement for Solazyme Roquette Nutritionals with Roquette. In December 2010, the Company entered into an exclusive distribution relationship with Sephora International, and in January 2011, the Company entered into a distribution relationship with Sephora USA. Under the arrangements, each of Sephora International and Sephora USA will distribute the Algenist product line in their respective territories.

In Fuels and Chemicals market its renewable oils can be refined and sold as drop-in replacements for marine, motor vehicle and jet fuels, as well as replacements for chemicals that are traditionally derived from petroleum or other conventional oils. The Company work with its refining partner Honeywell UOP to produce Soladiesel (renewable diesel), So! ladiesel renewable diesel for United States Naval vessels, and Solajet renewable jet fuel for both military and commercial application testing. In nutrition market the Company has developed microalgae-based food ingredients, including oils and powders that enhance the nutritional profile and functionality of food products while reducing costs for consumer packaged goods (CPG) companies. In Skin and Personal Care market the Company hs developed a portfolio of branded microalgae-based products. Its ingredient is Alguronic Acid, which the Company has formulated into a range of skin care products with anti-aging benefits. The Company is also developing algal oils as replacements for the oils used in skin and personal care products.

The Company competes with BP p.l.c., Royal Dutch Shell plc, and Exxon Mobil Corporation, jatropha, camelina, SALOV North America Corporation, Archer Daniels Midland Company, Cargill, Incorporated, DSM Food Specialties and Danisco A/S

Advisors' Opinion:

• [By Maxx Chatsko]

  He believes several companies have set the bar precipitously low to start the year despite targeted developments expected to occur before the start of 2014. Watch the following video for his thoughts on potential positive surprises awaiting investors in�Amyris� (NASDAQ: AMRS  ) ,�BioAmber� (NYSE: BIOA  ) ,�Codexis� (NASDAQ: CDXS  ) , and�Solazyme� (NASDAQ: SZYM  ) .

10 Best Life Sciences Stocks To Own Right Now: OriginOil Inc (OOIL)

OriginOil, Inc., incorporated on June 1, 2007, is a technology company. The Company is primarily involved in research and development activities, and sales of pilot and demonstration equipment. The Company has developed an energy production process for harvesting algae and cleaning up oil and gas water. To develop the energy and ancillary markets, the Company sells smaller-scale equipment, such as the Algae Appliance. The Company�� process, CLEAN-FRAC, represents a generation of water treatment that is chemical free. The Company's water cleanup technology, Electro Water Separation (EWS), is a chemical-free process that extracts organic contaminants from large quantities of water. Its products include EWS Algae, EWS Algae A4, EWS Algae A60, EWS Algae A200, EWS Petro P160, and EWS Aqua Q60.

The Company intends to embed its technology into larger systems through licensing and joint ventures. The Company is in the process of pursuing secondary licensing opportunities outside of energy, including aquaculture. EWS Algae A4 is an entry-level algae harvester designed to make it easier and faster for producers and researchers to try and buy the Company's harvesting technology. EWS Algae A60 is a pilot scale algae harvester providing a low energy, chemical-free, continuous flow wet harvest system to dewater and concentrate the microalgae. EWS Petro Model 160 is designed to remove organics, such as crude oil, and suspended solids and bacteria from process water, such as produced or frac flowback water at a continuous flow rate of one barrel per minute or 160 liters per minute in continuous, chemical free operation. EWS Aqua Q60 is a commercial fish farming pond water treatment system, designed to clean pond water of ammonia, bacteria and aquatic animal pathogens in a continuous loop.

Advisors' Opinion:

• [By CRWE]

  Today, OOIL�has shed (-3.12%) down -0.01 at $.31 with 95,929 shares in play thus far (ref. google finance Delayed: 2:04PM�EDT October 15, 2013).

  OriginOil, Inc. previously reported it has signed its first pay-per-barrel agreement with Industrial Systems, Inc. (ISI) for a water treatment system integrating OriginOil�� process as the first stage of treatment.

  Delta, Colorado-based ISI has agreed that it will operate the Model P160 as part of its overall frac flowback water cleanup service, and pay OriginOil a fee for each barrel processed.

5 Best New Stocks To Invest In 2015: Osage Exploration and Development Inc (OEDV)

Osage Exploration and Development, Inc. (Osage) is an oil and natural gas exploration and production company with reserves and production in the country of Colombia and the state of Oklahoma. The Company�� pipeline is located in Colombia. The Companys focuses on developing its 28,000-acre Horizontal Mississippian block along the Nemaha Ridge in Logan County, Oklahoma, with their partners Slawson Exploration, and U.S. Energy Development Corp. The Company generates oil sales from its production operations in Colombia and in the state of Oklahoma and pipeline revenues from its Cimarrona property in Colombia. During the year ended December 31, 2011, the Company drilled two salt water disposal wells and commenced drilling the Wolfe#1-29H, the Company�� horizontal Mississippian well in Logan County, Oklahoma. In January 2012, the Company began drilling the Krittenbrink 2-36H, the Company�� second well in Logan County.

The Company�� subsidiary, Cimarrona LLC, owns a 9.4% interest in certain oil and gas assets in the Guaduas field, located in the Dindal and Rio Seco Blocks that consist of 21 wells, of which seven are producing, that covers 30,665-acres in the Middle Magdalena Valley in Colombia, as well as a pipeline with a capacity of approximately 30,000 barrels of oil per day. The Cimarrona property, but not the pipeline, is subject to an Ecopetrol Association Contract (the Association Contract) whereby the Company pays Ecopetrol S.A. (Ecopetrol) royalties of 20% of the oil produced.

The Company has acquired oil and gas leases in Logan County, Oklahoma targeting the Mississippian formation. The Mississippian formation is located on the Anadarko Shelf in northern Oklahoma and south-central Kansas. The top of this expansive carbonate hydrocarbon system is encountered between 4,000 and 6,000 feet and lies stratigraphically between the Pennsylvanian-aged Morrow Sand and the Devonian-aged Woodford Shale formations. The Mississippian formation reach 600 feet in gross thickness a! nd the targeted porosity zone is between 50 and 300 feet in thickness. The Company owns 100% of the working interest in certain producing oil and natural gas leases located in Osage County, Oklahoma (Hopper Property). The Property consists of 23 wells, 10 of which are producing wells, on 480 acres.

Advisors' Opinion:

• [By CRWE]

  Today, OEDV surged (+1.96%) up +0.03 at $1.56 with 178,129 shares in play thus far (ref. google finance Delayed: 12:28PM EDT August 30, 2013).

  Osage Exploration and Development, Inc. previously reported preliminary production results on the Mallard 1-16H Horizontal Mississippian well in Logan County, Oklahoma. The well, located in Section 16-17N-3W, achieved a 24-hour peak initial production rate of 705 barrels of oil plus associated natural gas on an electric submersible pump and a 48/64��choke.

5 Best New Stocks To Invest In 2015: Gevo Inc (GEVO)

Gevo, Inc., incorporated in June 2005, is a renewable chemicals and advanced biofuels company. The Company is focused on the development and commercialization of alternatives to petroleum-based products. The Company operates in two segments: Gevo, Inc. Segment and Gevo Development/Agri-Energy Segment. Gevo, Inc. Segment is responsible for all research and development activities related to the future production of isobutanol, maintaining and protecting its intellectual property portfolio, developing future markets for its isobutanol and providing corporate oversight services. Its Gevo Development/Agri-Energy Segment is responsible for the production of ethanol and related products. In September 2010, the Company acquired a 22 MGPY ethanol production facility in Luverne, Minnesota that the Company intends to retrofit to produce isobutanol.

The Company�� isobutanol can also be converted by its customers into a range of hydrocarbons, which form the basis for the production of many products, including plastics, fibers, rubber and other polymers and hydrocarbon fuels, including jet and diesel fuel. Its technology platform consists of biocatalysts and a isobutanol separation unit. Together these technologies form the Gevo Integrated Fermentation Technology (GIFT). GIFT is designed to allow relatively low capital expenditure retrofits of existing ethanol facilities, enabling isobutanol production from a range of renewable feedstocks. The Company�� biocatalysts are microorganisms that have been designed to metabolize sugars to produce isobutanol.

GIFT consists of two components, biocatalysts which convert sugars derived from multiple renewable feedstocks into isobutanol through fermentation, and a separation unit which is designed to continuously separate isobutanol from water during the fermentation process. The Company developed its technology platform to be compatible with the existing approximately 20 BGPY of global operating ethanol production capacity, as estimated by the R! enewable Fuels Association (RFA).

The Company competes with Butamax Advanced Biofuels LLC (Butamax), BP p.l.c. (BP), E. I. du Pont de Nemours and Company, Butalco GmbH, Cathay Industrial Biotech Ltd., METabolic EXplorer S.A., TetraVitae Bioscience, Inc., Cobalt Technologies, Inc., Green Biologics Ltd. Shell Oil Products US (Shell Oil), BP, DuPont-Danisco Cellulosic Ethanol LLC, Abengoa Bioenergy, S.A., POET, LLC, ICM, Mascoma, Range Fuels, Inbicon A/S, INEOS New Planet BioEnergy LLC, Coskata, Archer Daniels Midland Company, BlueFire Ethanol, Inc., KL Energy Corporation, ZeaChem Inc., Iogen Corporation, Qteros, Inc., and AE Biofuels, Inc.

Advisors' Opinion:

• [By Bryan Murphy]

  The so-called fundamentals, frankly, don't really matter for Entest BioMedical Inc. (OTCMKTS:ENTB) or Gevo, Inc. (NASDAQ:GEVO). Oh, both GEVO and ENTB are generating sales, but both are consistently taking losses. That's ok though, as for both companies right now, profits aren't really the point - it's the pipeline that matters.

• [By Alyce Lomax]

  Solazyme is more than a biofuels play like fellow biofuels upstarts like Amyris (NASDAQ: AMRS  ) and Gevo (NASDAQ: GEVO  ) . I purchased shares of Solazyme for the Prosocial Portfolio (I hold shares in my personal portfolio, too) not only for its impressive foray into a nascent field, but also because it had already inked some impressive partnerships. Meanwhile, its alternative oils go much further than simply trying to provide alternatives to fossil fuels. Its microalgae-derived oils can also be used in skin care and food.

Customers Bancorp Picks New CFO

Wyomissing, Pa.-based Customers Bancorp (NASDAQ: CUBI  ) has a new CFO.

On Tuesday, Customers Bancorp announced that Interim Chief Financial Officer James D. Hogan intends to retire from the bank on Aug. 13. Replacing Hogan will be Robert E. Wahlman, a new hire from Doral Financial, who will join Customers initially in the post of executive vice president on Aug. 5, and then be promoted to permanent CFO on the 13th.

In a simultaneous filing with the SEC, Customers said Hogan will be paid an annual base salary of $315,000 during his first two years with the bank, with a "bonus opportunity" to receive as much as 50% of his base salary. He will also receive 20,000 stock options, and an $800-a-month car allowance.

In contrast, the executive he is replacing, Hogan, received only $180,550 in total compensation in 2012, according to data from Salary.com. Hogan's base salary in particular was described as being just under $117,000.

Hedge Funds Shake Financial System More Than Banks During Crises: Study

Hedge funds may play an even bigger role than banks in transmitting financial shocks to the rest of the market, and thus may intensify systemic risk more than previously thought, according to new research.

An economic letter issued last week by the Federal Reserve Bank of San Francisco reported a new risk measurement that suggests that financial crises intensify spillover effects among certain types of financial institutions.

It shows that hedge funds may be the most important transmitters of shocks during crises.

Reint Gropp, a visiting scholar at the San Francisco Fed from Goethe University in Frankfurt, developed a new way to measure spillover effects, and estimated the effects for investment banks, commercial banks, insurance companies and hedge funds.

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How big and how long risk spillovers among financial institutions last depend on whether markets are in normal times or in crisis, Gropp reported. They can be much larger during crisis times.

He found that insurance companies — the case of AIG during the recent financial crisis notwithstanding — are not systemically important in causing distress elsewhere. They tend to be relatively safe in crises, as their returns are negatively correlated to those of other institutions.

In contrast, spillovers from hedge funds during crises become huge, and make the funds more important shock transmitters than either commercial or investment banks.

The reason is that hedge funds are opaque and highly leveraged, Gropp said. If forced to liquidate under duress, they may sustain big losses, possibly leading to further defaults or threatening systemically important entities both directly as counterparties or creditors and indirectly through asset price adjustments.

How big are the spillover effects from hedge funds? Gropp said that during normal market conditions a one percentage-point increase in hedge fund riskiness raises risk of investment banks by an estimated 0.09 percentage point.

During crises, the same shock increases the risk of investment banks by 0.71 percentage point.

By comparison, a one percentage-point increase in risk of commercial banks leads to a 0.01 percentage-point increase in risk of investment banks during normal times, and a 0.05 percentage point increase during crises.

Hedge fund spillover effects are largest after 10 to 15 days, and subside after about three months, according to Gropp.

He said more research is needed to explain the mechanisms that underlie the estimated spillover effects.

Hasbro Earnings Buoyed by Sales of Girls' Toys

Steven Senne/AP PAWTUCKET, R.I. -- Hasbro returned to profitability in its first quarter, driven by sales of girls' toys such as My Little Pony and Nerf Rebelle. The prior-year results were dragged down by restructuring charges. Hasbro's (HAS) latest earnings topped Wall Street estimates but revenue was short of what analysts expected. Sales of girls' products rose 21 percent. Sales of My Little Pony Equestria Girls dolls also resonated with customers. The boys' category reported a 2 percent increase in sales, helped by Nerf and Marvel products. This was partially offset by weakening Beyblade sales. Game sales fell 4 percent, hindered partly by declining sales of trading card game Duel Masters. Sales of preschool products slipped 4 percent due to soft sales of core Playskool items. Sales for the entertainment and licensing division rose 13 percent thanks to the inclusion of Backflip Studios. International sales increased 5 percent, led by Europe and Latin America. In the U.S. and Canada, sales edged down 1 percent. The Pawtucket, R.I.-based company earned $32.1 million, or 24 cents a share, for the period ended March 30. That compares with a loss of $6.7 million, or 5 cents a share, a year earlier. Stripping out favorable tax adjustments of 10 cents a share, earnings were 14 cents a share. The year-ago period was pulled down by restructuring charges totaling 14 cents a share. It also had favorable tax adjustments of 4 cents a share a year ago. Analysts surveyed by FactSet expected earnings for the latest period of 10 cents a share, on average. Revenue edged up 2 percent to $679.5 million from $663.7 million, but missed Wall Street's estimate of $690.1 million. Last week rival Mattel (MAT) reported an unexpected first-quarter loss, hurt by soft Barbie sales and markdowns to clear excess inventory. Hasbro Inc. shares climbed $2.39, or 4.4 percent, to $57 in premarket trading Monday about an hour ahead of the market opening. Its shares are down slightly so far this year.

You Place a Trade in Your Brokerage Account. What Happens Next?

Let's say you want to buy 100 shares of a stock. You place an order in your brokerage account. What happens next? How do you go from mouse click to owning shares in a company? And what happens when a hedge fund wants to do the same thing, but on a scale 10,000 times larger?

I recently met up with longtime New York Stock Exchange floor trader Doreen Mogavero. I asked her to explain the process. Here's what she had to say. (A transcript follows.)

Morgan Housel: Let's say I'm at home on my online brokerage account. I want to buy 100 shares of Coke. What happens then?

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Doreen Mogavero: Well, your hundred shares of Coke may never reach this floor. It may be internalized at the vendor that you use. More than likely, an order that size would be internalized at a vendor. What we do here primarily as brokers these days is not so much the small retail order, but it's more dealing with the money managers and the pension funds and the larger orders.

Morgan Housel: So let's say I'm a hedge fund that wants to buy 1 million shares of Coke. How does that get to you? What is your job? How do you process that transaction?

Doreen Mogavero: Well, most of us have direct lines to the clients that we talk to, whether they're hedge funds or pension plans or whatever they may be, and the manager will send us an order electronically into our system. That will send into our handhelds, and then we will manage the order from there. We can from the floor here trade not just on this floor; we trade wherever the best price is. The New York Stock Exchange will, if the best price is not here, automatically route our order to the best price. We are compliant with all of the regulations of Reg NMS, so we are bound by Reg NMS to find the best price, so we have to be allowed and not restricted to just one area.

Coffee surges on renewed concern about crop

NEW YORK (AP) — The price of coffee surged on Thursday on renewed concerns about the outlook for Brazil's crop.

Coffee for July delivery jumped 15.25 cents, or 8.1%, to $2.04 per pound.

The price of coffee beans has risen about 85% this year on concerns that dry weather in Brazil will damage the harvest there. Brazil is the world's largest coffee producer, accounting for about a third of global production, according to the International Coffee Organization.

The catalyst for the move higher on Thursday was a crop inspection report from Fort Lauderdale, Florida-based coffee importer, Wolthers Douque. The report predicted that 35% of the coffee crop would be lost in the South Minas region of Brazil due to unfavorable weather.

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Big price swings for coffee may become the norm in coming months, said Sterling Smith, a commodities analyst at Citigroup.

"We're going to be seeing this happen frequently until we get a better idea of how much damage was done to the crop," Smith said. Coffee in Brazil isn't harvested until June.

MORE: Hey, caffeine addicts -- Unlimited coffee for $45

In other trading of agricultural products, wheat edged higher while corn and soybeans fell.

Wheat for July rose 3.8 cents, or 0.5%, to $6.99 a bushel. Corn for the same month fell 3 cents, or 0.6%, to $5 a bushel and soybeans fell 6.5 cents, or 0.4%, to $15.02 a bushel.

Metals were mixed. Gold, silver and platinum fell. Copper and palladium rose.

Gold for June fell $9.60, or 0.7%, to $1,293.90 an ounce. Silver for May dropped 3.8 cents, or 0.2%, to $19.60 an ounce. July platinum dropped $9.10, or 0.6%, to $1,428.70 an ounce.

Copper for May rose 2 cents, or 0.6%, to $3.05 a pound. Palladium for June climbed $4.80, or 0.6%, to $807.10 an ounce.

In energy trading, May crude rose 54 cents to $104.30 a barrel.

The ! price of natural gas surged after the Energy Department reported that U.S. storage levels rose less than analysts had expected. Natural gas for May delivery rose 21.1 cents, or 4.7%, to $4.74 per 1,000 cubic feet.

Wholesale gasoline rose 1 cent to close at $3.06 a gallon. Heating oil was little changed at $3 a gallon.

Initial jobless claims rise to 304,000

More Americans filed initial claims for unemployment benefits last week and a new estimate for the previous week erased what had first looked like a seven year low, the Labor Department said Thursday.

First-time claims rose to a seasonally adjusted 304,000, an increase of 2,000 from the previous week's revised level, the Labor Department said.

Last week, Labor reported first-time claims for the week ending April 5 had dropped to 300,000, which was reported as the lowest since May 2007.

Economists had forecast this week's report would show a rise to 315,000, according to a survey by Action Economics.

But this time of year, jobless claims numbers can bounce around because Easter's date changes from year to year and that can affect Labor's seasonal adjustments.

The longer-term trend is still moving down, a sign of the job market's slow improvement..

In Thursday's report, Labor said the 4-week moving average was 312,000, a decrease of 4,750 from the previous week's revised average. That is the lowest level for this average since October 6, 2007 when it was 302,000.

Claims averaged well over 600,000 a week through much of 2009.

Earlier this month, the government reported the economy gained 192,000 jobs in March while January and February job gains were 37,000 higher than previously estimated. The unemployment rate held steady at 6.7%.

Why Flash Sales Aren't Always Good Deals

If you like designer brands but don't like their high prices, you're probably familiar with flash sale sites such as Gilt, HauteLook, One Kings Lane and Rue La La. These members-only online outlets offer select merchandise for a limited period of time at discounted prices (and membership typically is free). You can find apparel, accessories, home goods and furnishings from Gucci, Kate Spade, Lilly Pulitzer, Ralph Lauren, Rolex, Tory Burch and other top designers for 60% or more off retail prices at these sites.

SEE ALSO: How to Find Real Deals at Outlet Malls

However, deals on flash sale sites aren't always as good as they seem. Here's why:

Sometimes you can find better deals elsewhere. Because the sales are accessible only to the sites' members, the offers appear to be exclusive, says says consumer expert Andrea Woroch. Plus, the limited time of the sales -- typically 72 hours -- creates a sense of urgency. You're made to feel like you have to buy an item immediately, or you'll miss out on a great price. But often the items available on flash sale sites are available elsewhere for the same or lower price, Woroch says.

For example, we founda a pair of Sam Edelman sandals on sale April 15 for $49.97 at members-only HauteLook that were on sale online at Neiman Marcus Last Call for $44.80. And Woroch says that she frequently finds the same or similar home furnishings and accessories on sale for a limited time at members-only sites One Kings Land and Joss & Main for much lower prices at brick-and-mortar retailer HomeGoods. She often can find the same designer jeans that are touted as special deals on apparel flash-sale sites at discount retailers T.J. Maxx and Marshalls.

So be sure to use a price-comparison site such as Price Grabber or do a Google search to see if items being sold through flash sites can be purchased for a lower price elsewhere. Also check high-end retailers' outlet stores, such as Nordstrom Rack and Saks Off 5, for discounted luxury goods. You'll be able to try on clothes or see the items before you purchase them to ensure fit and quality, and you might be able to find coupons for those stores through the outlet mall's Web site.

Keep in mind that many of the flash sale sites have repeat sales or will let you put items on a waiting list and will notify you if they're available again, Woroch says. So you don't need to feel rushed to make a purchase just to snag a low price.

Shipping can be pricier. Major online retailers typically offer free shipping deals, or you can find free shipping codes through sites such as FreeShipping.org. But free shipping is a rarity on flash-sale sites, Woroch says. Some sites, such as Rue La La and One Kings Lane, currently are offering a shipping deal that allows members to pay a $9.95 fee for unlimited shipping on certain items for 30 days. Of course, exclusions apply. You still have to pay $200 to $350 for furniture delivery from One Kings Lane.

Our review of shipping fees also found that they tend to be higher on some flash-sale sites. For example, HauteLook offers free shipping on orders totaling $100 or more. However, shipping for purchases less than $100 starts at $7.95. So if you ordered the sandals in the example above from HauteLook, not only would you pay a higher price but also you'd pay more in shipping than if you ordered them from Last Call, which would charge a $5 shipping fee for the sandals.

Return policies can be stingy. Most brick-and-mortar and online retailers offer a 30-day window for refunds or exchanges. However, we found that some of the flash-sale sites give customers less time to return items or have strict requirements for issuing refunds. And many of the items sold through these sites are nonrefundable.

For example, One Kings Lane gives customers only 14 days within date of an item's delivery to return it. Return shipping is free if you apply your credit to your One Kings Lane account; otherwise, the shipping cost is deducted from your refund if you apply your credit to your original form of payment. Gilt allows only sized items -- clothing, footwear and belts -- to be returned for a refund. Handbags, toys, ties and other non-sized items aren't eligible for return. Customers have 21 days to return eligible items, which must be unused and in their original packaging. Items priced at $199.99 or less can be returned for Gilt credits. Items priced at $200 or more can be returned for Gilt credits or a refund minus $7.95 for return shipping.

HauteLook, on the other hand, accepts returns up to 90 days after their ship date. (It's owned by Nordstrom, which has no time limit on returns or exchanges of items from its stores or Web site.) And when I was unhappy with a purchase from Zulily, a members-only site with 72-hour sales on women's and children's items, I called a customer service representative and was given a full refund without even having to return the item.

So it pays to check flash-sale retailers' return policies before making any purchases. If it's stingy, you don't want to be stuck with an item you don't want -- even if you did get it at a good price.

3 Stocks Spiking on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Sell Before It's Too Late

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Stocks Poised for Breakouts

With that in mind, let's take a look at several stocks rising on unusual volume recently.

GasLog

GasLog (GLOG), together with its subsidiaries, owns, operates and manages vessels in the liquefied natural gas market worldwide. This stock closed up 2.5% to $25.53 in Friday's trading session.

Friday's Volume: 5.39 million

Three-Month Average Volume: 1.06 million

Volume % Change: 612%

From a technical perspective, GLOG spiked notably higher here and broke out into new all-time-high territory with monster upside volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $14 to its intraday high of $26.72. During that uptrend, shares of GLOG have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if GLOG manages to take out Friday's high of $26.72 with strong volume.

Traders should now look for long-biased trades in GLOG as long as it's trending above support at $24 or above its 50-day at $22.60 and then once it sustains a move or close above $26.72 with volume that hits near or above 1.06 million shares. If that move materializes soon, the GLOG will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $30 to $35.

Diamondback Energy

Diamondback Energy (FANG), an independent oil and natural gas company, focuses on the acquisition, development, exploration and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. This stock closed up 3% at $67.60 in Friday's trading session.

Friday's Volume: 2.50 million

Three-Month Average Volume: 932,910

Volume % Change: 166%

From a technical perspective, FANG jumped higher here right above some near-term support at $64.43 with above-average volume. This stock has been consolidating and trending sideways for the last few weeks above its 50-day moving average, with shares moving between $64 on the downside and $70.99 on the upside. Shares of FANG flirted with a breakout on Friday after the stock briefly traded above some near-term overhead resistance at $68.87. This stock hit an intraday high of $70.72 before it closed at $67.60. Shares of FANG are now starting to move within range of triggering another big breakout trade. That trade will hit if FANG manages to take out Friday's high of $70.72 to its all-time high at $70.99 with high volume.

Traders should now look for long-biased trades in FANG as long as it's trending above support at $64.43 or above its 50-day at $62.82 and then once it sustains a move or close above those breakout levels with volume that hits near or above 932,910 shares. If that breakout starts soon, then FANG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $75 to $80.

Targa Resources Partners LP

Targa Resources Partners LP (NGLS) is engaged in the ownership, operation, acquisition and development of midstream energy assets in the U.S. This stock closed up 2.3% to $60.08 in Friday's trading session.

Friday's Volume: 496,000

Three-Month Average Volume: 288,562

Volume % Change: 76%

From a technical perspective, NGLS spiked notably higher here with above-average volume. This stock has been uptrending strong for the last three months and change, with shares moving higher from its low of $47.40 to its recent high of $61.59. During that uptrend, shares of NGLS have been making mostly higher lows and higher highs, which is bullish technical price action. This move on Friday is now starting to push shares of NGLS within range of triggering a big breakout trade. That trade will hit if NGLS manages to take out Friday's high of $60.27 to its 52-week high at $61.59 with high volume.

Traders should now look for long-biased trades in NGLS as long as it's trending above some key near-term support at $58 and then once it sustains a move or close above those breakout levels with volume that hits near or above 288,562 shares. If that breakout gets underway soon, then NGLS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $65 to $70.

Best Long Term Stocks To Buy Right Now

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Under $10 Set to Soar

>>5 Big Trades to Survive a Roller Coaster Market

>>5 Ways to Profit From a Crowded Short Trade

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Dow Sapped of Energy, Loses Record Highs

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) opened 10 points lower than its record-high close yesterday. Though yesterday's gains were boosted by positive economic data, investors seem to be pulling back due to continued uncertainty revolving around the Fed's plan for its stimulus policy. As of this writing, the Dow is down 172 points and headed lower.

Economic data releases are limited today, with only the MBA mortgage purchase application survey coming out this morning. The newest data shows an 8.8% decrease in application activity, driven by a 12% decrease in refinancing applications. Since refinancing activity accounts for 71% of the overall applications, this data is not necessarily a bad sign for the housing market. Purchase applications for new mortgages increased 3% versus the previous week, and with the recent home price data showing a rise in prices due to higher demand, mortgage applications may begin commanding a bigger share of the applications activity.

Inside the Dow
The two telecom titans, AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) , are trailing this morning as rumors have emerged that a new era of mobile communications from Google is coming soon. With Google Fiber potentially turning the industry on its head, the current leaders are taking a hit, with AT&T down 1.72% and Verizon losing 3.11%. But this is a story that we've heard before. Google has yet to bring a product to market that would send both AT&T and Verizon packing, so the two providers have nothing to worry about -- yet. Right now, the speculation may be taking its toll on the telecom leaders, but until Google puts its wares on the market it will remain just speculation.

Top 10 Consumer Service Companies To Watch In Right Now

Though the mortgage data would not be favorable to banks, both Bank of America (NYSE: BAC  ) and JPMorgan (NYSE: JPM  ) are up this morning. B of A is leading the charge with a 1.04% gain, while JPMorgan is experiencing a more modest rise of 0.1%. Both banks are reaping the rewards of a long-awaited event -- Moody's newly upgraded rating of the banking system. The change to "stable" from "negative" took five years, and the banks have worked hard to get it. With record earnings, improved capital reserves, and cleaner balance sheets, the banks have given Moody's plenty of evidence that the banking sector will continue to grow. Moody's outlook for the banks includes improved creditworthiness over the next 12 to 18 months, with fewer downside risks for the financial institutions.

Bank of America's rise this morning also comes before a big hearing date later in the week. Though it seems that the looming date isn't bothering investors quite yet, we could see a big swing in momentum for the bank if things don't go its way. At stake is the $8.5 billion settlement between the bank and 22 institutional investors over 530 mortgage trusts sold by the acquired Countrywide. Currently there seems to be a question up in the air that could change everything and leave B of A with a big bill to pay.

Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand out. In a sea of mismanaged and dangerous peers, it stands out as The Only Big Bank Built To Last. You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

MagicJack is Fighting an Uphill Battle (FB, CALL)

To give credit where it's due, magicJack VocalTec Ltd (NASDAQ:CALL) was once one of the market's hottest stocks, and rightfully so. The company made a unique and highly marketable product, and consumers embraced the living daylights out of it. That's what caused shares of CALL to soar - and this isn't a misprint - more than 5000% between late-2008 and late-2012. It was even one of the SmallCap Network's featured stocks for a while back in 2012; the growth story was just that compelling.

This isn't 2012 though, and the future that magicJack VocalTec is facing now isn't as bright as the one that it seemed to be facing then. Ditto for the stock, which at one point was up more than 100% for the 2014. Though CALL has since pulled back by about 25% from its March peak, the current price of $19.26 (and the subsequent market cap of $350 million) still seems to be overstating the company's foreseeable potential. Why? Two key reasons.

First, and perhaps foremost, the number of device users fell sequentially in the most recently completed fiscal quarter, from 3.3 million to 3.2 million. That in itself isn't alarming per se; growth for any company can ebb and flow in the short run, especially when the product line is forever going through changes... upgrades, to be specific. What's alarming is that the headcount of active users fell to 3.3 million in Q3 from Q2's (2013) 3.36 million. That 3.36 million was admittedly up from Q1's 3.27 million active users, but still, considering the company lost ground in terms of users in the past two quarters and in the quarter prior to those two quarters it only saw anemic growth (despite the fact that magicJack PLUS launched in June of last year) it's clear that demand is deteriorating with no apparent way to stop it.

The second reason CALL shares may still be overvalued: Renewal rates were only 40% last quarter. Granted, that was a stronger renewal rate than the average renewal rate of 28% seen in 2012. It's still not strong enough to take the pressure o! ff of device revenue, however. If device sales - even those purchased only so owners could gain access to the mobile app - hit the wall they're likely to hit (more on that in a second), the company's revenue will suffer, as the bulk of it comes from device sales rather than providing the service. Remember, the number of active users still fell last quarter, even with higher retention.

Be that as it may, magicJack VocalTec Ltd may have bigger challenges than are apparent with a mere look at the accounting statements.

The recent $19 billion acquisition of mobile messaging service WhatsApp by Facebook Inc. (NASDAQ:FB) sparked some dreams of a similar valuation for magicJack VocalTec, with or without an acquisition. The euphoria may not have been felt by anyone more than current CALL CEO Gerald Vento, who made a point of making the comparison in Q4's conference call.

And from a cursory point of view, it's not a completely meaningless comparison. Whatsapp connects fellow users of Whatsapp, allowing them to send text messages, photos, and even audio messages between one another. MagicJack doesn't do any of that, but it perhaps does one thing better - it allows real-time voice-to-voice (VOIP) chat between fellow magicJack app users, in addition to anyone with a phone. If Whatsapp's 450 million users (and the 1 million it adds each day) is worth $19 billion, surely magicJack's 6.9 million app users (3.3 million of which used the service in the past 30 days) alone are worth much more than the company's current market cap of $350 million would suggest.

The problem is, the at that market cap, magicJack's 6.9 million users are already valued at $50 a piece... 20% higher than the crazy premium just paid per user ($42) of WhatsApp. If anything, even if CALL could command the same ridiculous pirce per user, the stock's still arguably 20% overvalued.

 But a paying voice customer is worth more than user of a free text and photo delivery service? There's just one problem with the theory about the value of a voice customer... it's not accurate. Gartner's consumer technologies research director Brian Blau said it as plainly as could be in an interview last month: "MagicJack has a significant number of active app users, but not enough to attract a bidder...It needs to break into the mobile application business because the value of voice services is declining across the industry, threatening its niche as a low-cost provider over the next 5 to 10 years."

Translation: Not only are voice customers not worth as much as they used to be, they may actually be worth less than the $42 a piece that Facbook just paid Whatsapp for non-voice user. That being said...

Best Defense Companies To Watch In Right Now

While magicJack is getting deeper into the application waters that Blau said was necessary, it may be too little, too late.

Having never taken a commanding lead in the app space when it was still fragmented a couple of years ago, magicJack VocalTec gave Skype, Viber (mobile wi-fi calling), Facebook, and WeChat (video calls) time and room to pitch their tent in the same mobile, wi-fi-capable telephony space. While magicJack may have one of the more recognizable names in the business, Facebook has a stunning 1 billion users, Viber has 100 million users, Skype has 300 million users (though no details on its mobile users), and WeChat has 350 million users. Any and all of these VOICE-capable companies can use their size and scale in a way that magicJack simply can't.

To be fair, no two of these choices are exactly alike, and a particular individual could find the magicJack app meets their unique need. By and large though, magicJack VocalTec is facing enormous competition on the same basic front, and is unlikely to be able to make ! a dent in any of it.

It gets worse. With rumors that Whatsapp will be adding voice capabilities later this year, the need for the (paid) magicJack service is further diminished.

It gets even worse than that. Though this has not been tested and verified by the SmallCap Network editorial staff (the test is forthcoming), the buzz is that the new magicjack app for Android that's supposed to make free wi-fi calls from a web-enabled phone doesn't actually use a wi-fi connection. Instead, though it appears as if a user is instructing the app to connect to another user outside of that phone's cellular connection technology, in reality, it's still routing that call as if it were a normal cell phone call, using the cell minutes it wasn't supposed to use, defeating the purpose of the app in the first place.

While verification of magicapp's error is pending, in the grand scheme of things it doesn't matter. MagicJack VocalTec Ltd has a mountain of other factors working against it, with no amount of strategizing that could foreseeably sidestep the oncoming freight train. Anyone who owns CALL should be worried here, and should be wondering if the bulk of the first quarter's rally was mostly a short-covering rally. The company itself has actually done little that will improve its marketing firepower anytime soon, and it just doesn't have the size it needs to muscle its way into any more market share when the Skypes and Facebooks out there are bearing down with highly comparable apps and services.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

Southwest Airlines Stock Soars for LUV Investors

Southwest Airlines (LUV) recently completed its 41st consecutive year of profitability – a stunning number for any airline.

And following better-than-expected Q4 results in January, analysts revised their earnings estimates significantly higher for Southwest for both 2014 and 2015. This sent Southwest Airlines stock to a Zacks Rank #1 (Strong Buy). Estimates have continued to climb as the company approaches its Q1 earnings release on April 24.

Southwest Airlines is the nation’s largest carrier in terms of originating domestic passengers boarded. Including AirTran (which it acquired in 2011), it operates the largest fleet of Boeing aircraft in the world, serving 96 destinations in 41 states, the District of Columbia, Puerto Rico, and five near-international countries.

Fourth Quarter Results

Southwest delivered solid Q4 results on January 23. Adjusted earnings per share reached a Q4 record of 33 cents, beating the Zacks Consensus Estimate of 28 cents. This was significantly higher than the 9 cents earned in the same quarter the year before.

Total operating revenues were also a fourth quarter record at $4.4 billion, increasing 6.1% year-over-year. Revenue passenger miles (RPMs), which calculates the number of miles traveled by paying passengers (# of paying passengers X distance traveled), rose 3.3%, while average passenger fare increased 5.4% to $156.05.

Southwest also reported solid results on the cost side as it “benefited from stable fuel prices, ongoing fleet modernization efforts, and rigorous cost control efforts,” according to CEO Gary Kelly. The cost per available seat mile (CASM = operating costs / available seat miles), declined 3.1% to 12.68 cents.

For the full year, Southwest generated free cash flow of $1.0 billion. The company returned $611 million of that to shareholders through stock buybacks and dividends. It also reduced debt and capital lease obligations by $313 million.

Estimates Rising

Following strong Q4 results, analysts revised their estimates significantly higher for both 2014 and 2015, sending the stock to a Zacks Rank #1 (Strong Buy).

Top Bank Companies To Invest In Right Now

Estimates have continued to climb too as Southwest has reported encouraging monthly traffic statistics. Year-to-date, RPMs are up 1.7% as the load factor (RPMs / ASMs) has increased 2.2 points to 79.3%.

You can see the strong, steady rise in estimates in the company’s “Price & Consensus” chart:

The current 2014 Zacks Consensus Estimate is $1.37, up from $1.24 ninety days ago. This represents 22% annual EPS growth. The 2015 consensus is now $1.62, up from $1.43 over the same period. This corresponds with 18% annual EPS growth.

Southwest is scheduled to report its Q1 results on April 24.

Reasonable Valuation

Despite the soft overall market, shares of LUV have soared 25% year-to-date. But the valuation picture still looks reasonable with shares trading at 16.5x 12-month forward earnings. That is a slight discount to its 10-year median of 16.9x. Its free cash flow yield of 6.2% is also above its historical median of 5.9%.

The Bottom Line

With strong earnings momentum, stellar growth projections, a history of profitability and reasonable valuation, shares of Southwest Airlines offer attractive upside potential.

Todd Bunton, CFA is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor service.

SOUTHWEST AIR (LUV): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

What Does Wall Street See for Shanda Games's Q1?

Shanda Games (Nasdaq: GAME  ) is expected to report Q1 earnings on May 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Shanda Games's revenues will contract -21.7% and EPS will shrink -27.3%.

The average estimate for revenue is $172.8 million. On the bottom line, the average EPS estimate is $0.16.

Revenue details
Last quarter, Shanda Games reported revenue of $172.1 million. GAAP reported sales were 19% lower than the prior-year quarter's $215.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.15. GAAP EPS of $0.12 for Q4 were 29% lower than the prior-year quarter's $0.17 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 65.4%, 390 basis points better than the prior-year quarter. Operating margin was 29.8%, 210 basis points worse than the prior-year quarter. Net margin was 19.8%, 260 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $743.0 million. The average EPS estimate is $0.69.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 300 members out of 311 rating the stock outperform, and 11 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Shanda Games a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shanda Games is outperform, with an average price target of $4.38.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Shanda Games makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add Shanda Games to My Watchlist.